Concerns Over Currencies of Resource-Rich Nations Following Taliban Takeover of Kabul
16.08.2021
- Number of New and Existing Home Sales
- Turkey: Home Sales
Last weekend, the three major U.S. stock indices all rose slightly, resulting in a market environment characterized by rising stock prices, falling interest rates, and a weaker U.S. dollar. WTI crude oil continued to decline and is currently trading around $67.50 per barrel. Crude oil is being sold off amid growing uncertainty about the U.S. economy following reports that the Taliban, an anti-government militant group in Afghanistan, seized control of the capital, Kabul, yesterday.
The foreign exchange market is generally trending toward a stronger yen, with the AUD/JPY pair falling from 80.87 to 80.25.The Australian dollar has been the weakest currency during today’s Asian trading session. From a technical perspective, if it breaks below the recent low of 80.1, there is a possibility it could fall below the key level of 80.00 and drop to 79.8, so traders should monitor price movements closely. Additionally, the Canadian dollar against the yen is also falling sharply and is currently trading around 87.26.
Today’s economic indicators include Turkish home sales at 4:00 PM, Canadian manufacturing sales and wholesale sales, and the U.S. New York Fed Manufacturing Index at 9:30 PM, Canadian existing home sales at 10:00 PM, and U.S. securities investment (net long-term flows) at 11:00 PM.We will carefully assess whether significant volatility will emerge at the start of the week, keeping geopolitical risks in mind.
Author: Keisuke Sakurai
